The Chinese central bank has issued a regulation on the
management of foreign exchange agencies, which will take effect on
November 1.
The regulation only allows foreign exchange agencies to change
the convertible foreign currencies in cash or travel notes to
Renminbi, but forbids foreign exchange purchase with Renminbi, said
an official with the People's Bank of China
(PBOC).
Domestic residents and Chinese nationals living abroad on
Chinese passport should buy foreign exchange they need from the
concerned banks with Renminbi when heading abroad.
Non-domestic residents, foreigners or residents from Hong Kong,
Macao and Taiwan, should go to the banks specified by the foreign
exchange agency if they want to change the Renminbi they got from
the foreign exchange agency back to foreign currency. The amount of
exchange should be no higher than the original foreign exchange and
the business should be performed within six months after the last
foreign exchange transaction.
Foreign exchange agencies refer to those domestic corporations
authorized by the qualified domestic banks to have foreign exchange
business by contract.
According to the regulation, all corporations registered in
China could apply to banks with foreign exchange business for
authorization of the business and concerned banks could authorize
any domestic corporations the rights to start this business.
Those foreign exchange agencies set up before the regulation
should make up the application procedure within two months after
the regulation takes effect, said the PBOC official. If they fail
to make up the application, they will not be allowed to have the
foreign exchange business again.
The regulation aimed to better satisfy the requirements of
domestic residents and non-domestic residents in foreign exchange
while keeping good order in China's foreign exchange market, said
the PBOC official.
(Xinhua News Agency October 19, 2003)